Estate preservation plan

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FUNERAL LEGAL LIFE HEALTH LOANS INVESTMENTS
Estate Preservation Plan

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Salient information :
• > than 30% of people who die do not have sufficient liquidity in their estates
to settle costs and debts. This results in:
• Renunciations,
• Forced sale of assets (general loss of value),
• Significant extensions in terms of timeframes to wind up estates,
• Heirs/beneficiaries needing to “capitalise” estate,
• Dilution of the net value of an estate - compromising dependants/heirs
• Masters Office states:
• 27% of cases submitted required Executor appointment
• 2015 – close to 42 Billion assets under care of the Master
• 77% of cases did not have an associated Will (intestate and guardian
fund)
Realisation of the Estate Preservation Plan
FACTS behind our thinking
Cash
Shortfalls
Unrecognized
Executor
Fees

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Key Issues for clients
My Will ?
• Has it been drawn up
correctly
• Is it enforceable
• Is it in a safe place
• Has it been maintained
Liquidity ?
Have I made provisions for:
• Executor Fees
• Administrative costs
• Maintenance costs
• Conveyance costs and
deposits
• Trust setup costs
• Other…
My dependants?
• Can they cover day to day household overheads while my
estate is being wound up
• Can I cover my maintenance agreement

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About the Estate Preservation Plan
We want to ensure that a client’s
last wishes regarding the distribution
of their Estate are relevant at the
time and executable, limiting the
financial consequences for heirs and
beneficiaries.
Our
Purpose

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About the Estate Preservation Plan
Our
Objective
We want to ensure that a client’s
last wishes regarding the distribution of
their Estate are relevant at the time and
executable, limiting the financial
consequences for heirs and
beneficiaries.
Provide a professionally
drawn up Will which is
validated, pro-actively
maintained and kept safe.
Life cover specifically structured to
cater for the expenses associated
with the winding up of an estate and
needs of dependants during this
time.
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Realisation of the Estate Preservation
Plan
Clientèle
Estate
Practitioners
(Executors)
Financial
Advisors
Clients and
Beneficiaries
of the
estate
Estate
Preservation
Plan™

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Role players and their mutual value
proposition
ClientFinancial
Advisor
Service Provider :
(nominated on Application Form)
1. Draws up and validates Will or
2. Validates existing Will, and
Links electronic copy to Policy,
Maintains it and keeps safe
Specialist Service Provider:
(Assigned to Financial Advisor)
Provides legal and technical support in relation
to the services provided by Service Providers
Estate Preservation Plan:
• Life Insurance Benefits
• Enabling technologies
• Value Add services
• Distribution Support Clientele Web
service portal
Reciprocal relationship:
• “orphan” wills
• New clients with liquidity needs
• Executor referrals

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Product Structure
3OptionsAvailable
Underwritten
(Gross Estates in excess
of R1,25mil)
Core Benefits
Flexible allocation
Optional Benefits
Choices based on package
selected
Core Benefits
Fixed allocations
Optional Benefits
Fixed benefits
Non Underwritten
(Gross Estates up to R1.25mil and
cases where Flexi Plan cannot be
offered)
A last Will and Testament kept safe by chosen independent and professional
service providers and updated regularly through our active engagement model
2OptionsAvailable

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Key Issues for clients
My Will ?
• Has it been drawn up
correctly
• Is it enforceable
• Is it in a safe place
• Has it been maintained
Liquidity ?
Have I made provisions for:
• Executor Fees
• Administrative costs
• Maintenance costs
• Conveyance costs and
deposits
• Trust setup costs
• Other…
My dependants?
• Can they cover day to day household overheads while my
estate is being wound up
• Can I cover my maintenance agreement

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Estate Preservation Plan
How does it work
Flexi
Plans
Gross Value
Estate
R1 250 001 to
R5 000 000
R5 000 001
R12 500 000
Greater than
R12 500 001
Total Core Cover R225 000 R525 000 R1 275 000
Initial Expense
Benefit
Up to R50 000 Up to R50 000 Up to R50 000
Executor Fee
Benefit
Min R50 000 Min R200 000 Min R500 000
Estate Shortfall
Benefit
Balance of Cover
OPTIONAL
Monthly Expense
Benefit X 12
R25 000
R25 000
R50 000
R25 000
R50 000
R75 000
Enhanced
Liquidity Benefit
R65 000
R65 000
R175 000
R65 000
R175 000
R450 000

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Gross Value
Estate
Up to R500 000
R500 001 to
R1 250 000
Total Core Cover R55 000 R100 000
Initial Expense
Benefit
R25 000 R25 000
Estate Shortfall
Benefit
R10 000 R25 000
Executor Fee Benefit R20 000 R50 000
OPTIONAL
Monthly Expense
Benefit X 12
R7 500 R15 000
Enhanced Liquidity
Benefit
R7 500 R20 000
Estate Preservation Plan
How does it work
Classic
Plans

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The Fulfilment Process
Nominate SP and mail
Application to
estate@clientele.co.za
Complete any
outstanding requirements
(IF ANY ????)
Policy Issued with
immediate cover
and SP notified of
services to be
rendered Will drafted, collected
and validated
Electronic copy of Will
uploaded and client
mailed
Annual review notification
and proactive
amendment

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Opportunities to explore:
• Leveraging off the SSP and SP vendor proposition:
Ability to engage and create reciprocal business relationships
Expand customer base and upsell potential
Expands prospect base for advisor
• Sensible way to build an advisory “academy”:
E.g. A single mandate apprentice team linked to a senior advisor:
Limited advice risk and complexity
Allows advisor to leverage off “high” advise needs
Allows apprentice to earn income quickly (lower income per sale but across a broader volume base, due to shorter sales
cycle)
Allows apprentice to learn the fundamentals of being an advisor before going into high advice space
• Enhanced customer value proposition:
Collaborative engagement with customers
Integrated will management process
Estate Preservation Plan is not just a
product

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Underwriting Methodology
First to
market Online
Underwriting
Assessment
Tool
No Medical Underwriting
Required
Web based allowing for online assessment results
accessed via: Phone, Tablet, PC
> 120 listed medical impairments
Real time Advice
Standard Rates, Load, Alternate Plan, Refer to
Underwriter
Limited Cover restrictions
Classic Plan Only : 12mnth pre/post pre-existing condition
No Avocational/Occupational Loadings
2 Yr suicide exclusion
Foreign Terrorism/War/Riot excluded

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Underwriting
More than
Likely to
be
Declined
Uncertain
Clear
Standard
rates
Apply for Classic Plan
with no underwriting questions required
Apply for Flexi Plan and:
1. Complete paper based questions with
possible tele-underwriting to follow,
OR
2. Complete Online assessment (tele-
underwriting may still apply if we can’t
get a definitive result)
https://securecover.clientele.co.za/
Apply for Flexi Plan
Complete paper based questionaire
Client health

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